GlaxoSmithKline has been the subject of an activist attack by Elliott, who built up a significant stake in the company in April.
GSK then hosted their long awaited investor day in June – laying out a plan for a future after spinning off their consumer health division.
Elliott then released a letter which was quickly rebutted by the board of GSK who called for the usual “stability”.
This was a good write up of the whole interaction.
One interesting element that has not entered the discussion is the balance sheet.
NewGSK will have 2x ND/EBITDA, even after gearing up consumer health to 4x and paying a dividend back. It also has a pension (£2bn deficit) and minority payments to ViiV partner Shionogi. All of this constrains the firm.
